Energy Savings Contract for NNSA Production Office Awarded to Johnson Controls for $57.6M
Contract Overview
Contract Amount: $57,629,546 ($57.6M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Energy
Start Date: 2013-09-28
End Date: 2036-11-30
Contract Duration: 8,464 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR NNSA PRODUCTION OFFICE - 00-NPO-70.
Place of Performance
Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53202
Plain-Language Summary
Department of Energy obligated $57.6 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR NNSA PRODUCTION OFFICE - 00-NPO-70. Key points: 1. Contract focuses on energy efficiency upgrades for the NNSA Production Office. 2. Johnson Controls Government Systems, LLC is the prime contractor. 3. The contract has a long duration, extending to November 2036. 4. This is a firm-fixed-price contract, indicating price certainty for the government.
Value Assessment
Rating: fair
The contract value is $57.6 million over its full term. Benchmarking against similar Energy Savings Performance Contracts (ESPCs) is difficult without specific project scope and energy savings data. However, the long duration suggests significant planned upgrades.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The long-term nature of the contract and its focus on energy savings aim to provide long-term cost reductions for taxpayers through improved energy efficiency.
Public Impact
Potential for significant long-term energy cost savings at the NNSA Production Office. Modernization of facilities through energy efficiency upgrades. Supports government goals for energy conservation and sustainability. Long-term commitment may tie government to specific vendor for upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 12 years) may limit flexibility.
- Firm Fixed Price on a long-term project could lead to cost overruns if scope changes significantly.
- Lack of specific performance metrics makes it hard to assess value.
Positive Signals
- Awarded through full and open competition.
- Focus on energy savings aligns with sustainability goals.
- Potential for significant long-term cost reductions.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to energy efficiency and facility upgrades. ESPCs are common in government for improving energy performance and reducing operational costs, often benchmarked against projected energy savings.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight would typically involve monitoring the contractor's progress in implementing energy conservation measures and verifying the achieved energy savings against the contract's baseline. The Department of Energy is responsible for this oversight.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Long contract duration may reduce flexibility.
- Potential for cost increases if scope changes significantly.
- Dependence on contractor for energy savings verification.
- Lack of detailed performance metrics in summary data.
Tags
engineering-services, department-of-energy, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $57.6 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. IGF::OT::IGF ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC) FOR NNSA PRODUCTION OFFICE - 00-NPO-70.
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $57.6 million.
What is the period of performance?
Start: 2013-09-28. End: 2036-11-30.
What is the projected return on investment (ROI) for this ESPC, and how does it compare to industry benchmarks?
The provided data does not include projected energy savings or the specific scope of work, making it impossible to calculate the ROI. A thorough analysis would require reviewing the contractor's proposal, baseline energy consumption data, and the specific energy conservation measures to be implemented. Benchmarking would then involve comparing the projected savings and payback period against similar ESPCs in the federal sector and private industry.
What are the key performance indicators (KPIs) for measuring the success of this energy savings contract?
Key performance indicators would likely include the actual reduction in energy consumption (electricity, natural gas, etc.), the resulting cost savings achieved, and the performance of the installed energy conservation measures. Verification of these savings against the established baseline is crucial. The contract should also define metrics for system uptime and maintenance effectiveness of the new equipment.
How will the government ensure that the firm-fixed-price structure remains advantageous throughout the contract's long duration, given potential changes in energy prices or technology?
The government will need robust oversight to ensure the contractor meets performance obligations. While firm-fixed-price offers cost certainty, the contract's terms should include mechanisms for scope adjustments or price re-evaluations if unforeseen circumstances significantly impact project feasibility or cost. Regular performance reviews and verification of savings are critical to ensure the government is receiving the intended value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 E. MICHIGAN ST., MILWAUKEE, WI, 53202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $157,732,892
Exercised Options: $157,732,892
Current Obligation: $57,629,546
Actual Outlays: $42,784,083
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM3609GO29036
IDV Type: IDC
Timeline
Start Date: 2013-09-28
Current End Date: 2036-11-30
Potential End Date: 2036-11-30 00:00:00
Last Modified: 2025-12-10
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